System and Method for Income Risk Assessment Utilizing Income Fraud and Income Estimation Models

Abstract

A method of income validation and evaluation for income risk assessment is disclosed in one embodiment. The method includes receiving a borrower loan request including a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code and a stated monthly income. The method further includes analyzing the received plurality of borrower data with respect to a stored plurality of borrower data to generate a normalized plurality of borrower data, implementing, if the stated monthly income is non-zero, an income fraud model utilizing at least the normalized plurality of borrower data including the employment type code, the borrower date-of-birth and the borrower zip code to determine an income fraud score based on the normalized plurality of borrower data, implementing an income estimation model utilizing at least the normalized plurality of borrower data and an age-band to determine a predicted income, and determining a risk assessment value as a function of the income fraud model and the income estimation mode.

1 . A method of income validation and evaluation for income risk assessment, the method comprising:
 receiving a borrower loan request including a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code and a stated monthly income;   analyzing the received plurality of borrower data with respect to a stored plurality of borrower data to generate a normalized plurality of borrower data;   implementing, if the stated monthly income is non-zero, an income fraud model utilizing at least the normalized plurality of borrower data including the employment type code, the borrower date-of-birth and the borrower zip code to determine an income fraud score based on the normalized plurality of borrower data;   implementing an income estimation model utilizing at least the normalized plurality of borrower data and an age-band to determine a predicted income; and   determining a risk assessment value as a function of the income fraud model and the income estimation mode.   
     
     
         2 . The method of  claim 1 , wherein the risk assessment value comprises a high risk value, a medium risk value and a low risk value. 
     
     
         3 . The method of  claim 1 , wherein the received borrower loan request is provided in a structured data format. 
     
     
         4 . The method of  claim 1 , wherein the age-band is a five (5) year age range determined to no exceed the borrower date-of-birth. 
     
     
         5 . The method of  claim 1  further comprising:
 determining, if the stated monthly income is non-zero, an income deviation as the difference between the predicted income and the stated monthly income. 
 
     
     
         6 . The method of  claim 1  further comprising:
 determining a confidence interval based on the normalized plurality of borrower data. 
 
     
     
         7 . The method of  claim 7 , wherein the normalized plurality of borrower data include a job title. 
     
     
         8 . The method of  claim 7 , wherein determining a risk assessment value further comprises determining a risk assessment value as a function of the confidence interval. 
     
     
         9 . A system of income validation and evaluation for income risk assessment, the system comprising:
 a computer-processor in communication with a memory device, wherein the memory device is configured to store computer-processor executable instructions to:
 store a borrower loan request in at least a portion of the memory device, wherein the borrower loan request includes a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code, an age-band and a stated monthly income; 
 standardize the plurality of borrower data with respect to an aggregate plurality of borrower data stored in at least a second portion of the memory device; 
 implement an income fraud model utilizing at least the standardized plurality of borrower data to determine an income fraud score; 
 implement an income estimation model utilizing at least the standardized plurality of borrower data to determine a predicted income as a function of at least the age band; and 
 determine a risk assessment value as a function of the income fraud model and the income estimation mode. 
   
     
     
         10 . The system of  claim 9 , wherein the income fraud model is implemented when the stated monthly income is determined to be a non-zero value. 
     
     
         11 . The system of  claim 9 , wherein the risk assessment value represents one of: a high risk category, a medium risk category and a low risk category. 
     
     
         12 . The system of  claim 9 , wherein the borrower loan request is received via a communication module in communication with the computer-processor and the memory device. 
     
     
         13 . The system of  claim 12  wherein the borrower loan request is provided in a structured data format. 
     
     
         14 . The system of  claim 9 , wherein the predicted income is determined as a function of the age-band. 
     
     
         15 . The system of  claim 9 , wherein the age-band is a five (5) year age range determined to no exceed the borrower date-of-birth. 
     
     
         16 . The system of  claim 9 , wherein the memory device is further configured to store computer-processor executable instructions to further comprising:
 determine, if the stated monthly income is non-zero, an income deviation as the difference between the predicted income and the stated monthly income.   
     
     
         17 . The system of  claim 9 , wherein the memory device is further configured to store computer-processor executable instructions to further comprising:
 determine a confidence interval based on the normalized plurality of borrower data.   
     
     
         18 . A method of income validation and evaluation for income risk assessment, the method comprising:
 analyzing a received plurality of borrower data with respect to a stored plurality of borrower data to generate a normalized plurality of borrower data,
 wherein the received plurality of borrower data includes a plurality of borrower data selected from the group consisting of: an employment type code, a borrower date-of-birth, a borrower zip code and a stated monthly income; 
   implementing, if the stated monthly income is non-zero, an income fraud model utilizing at least the normalized plurality of borrower data to determine an income fraud score based on the normalized plurality of borrower data;   implementing an income estimation model utilizing at least the normalized plurality of borrower data and an age-band to determine a predicted income; and   determining a risk assessment value as a function of the income fraud model and the income estimation mode.   
     
     
         19 . The method of  claim 18 , wherein the risk assessment value comprises a high risk category, a medium risk category and a low risk category. 
     
     
         20 . The method of  claim 18 , wherein the age-band is a five (5) year age range determined to not exceed the borrower date-of-birth.